HP Reports Q1 Revenue Up 6.9% to $14.4B, Non-GAAP EPS Rises 9.5%
HP Inc. posted fiscal Q1 net revenue of $14.4 billion, up 6.9% year-over-year, with GAAP diluted EPS of $0.58 (-1.7%) and non-GAAP diluted EPS of $0.81 (+9.5%). Operating cash flow reached $383 million, free cash flow was $175 million, and the company returned $0.6 billion to shareholders via $325 million in buybacks and $0.3 billion in dividends.
1. Q1 Financial Highlights
HP Inc. delivered fiscal Q1 net revenue of $14.4 billion, up 6.9% year-over-year, with GAAP operating margin contracting to 5.3% from 6.3%. GAAP diluted EPS was $0.58, down 1.7%, while non-GAAP diluted EPS rose 9.5% to $0.81 with a 6.9% operating margin.
2. Cash Generation and Returns
Operating activities generated $383 million of cash, leading to free cash flow of $175 million, up 150% year-over-year. The company returned $0.6 billion through $0.30 per share dividends costing $277 million and $325 million in share repurchases, ending with $3.2 billion gross cash.
3. Segment Results and Outlook
Personal Systems revenue climbed 11% to $10.3 billion, with consumer up 16% and commercial up 9%, and a 5.0% operating margin. The company maintained its full-year outlook but signaled results could settle near the low end due to rising memory costs.